Adding clause to return the bonus amount is emplyee does not stay for 1 year - CiteHR
Manojkamble
Sr. Hr Executive
Aniket Pathak
Sr. Executive Hr
+1 Other

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Hi All,
Can a company give performance bonus to employee, and mention a clause that, if the employee leaves from job with in year he have to return the full bonus amount to company.
Regards
Muniraju

Don't think so,because when employee performs then company pays him bonus/incentive which can not be retrieved even if employee left or does not perform later in future. Also, i don't think it will work. instead of Performance bonus company can give retention bonus after completing desired period that will help in retention.
Dear Muniraju,
Statutory bonus and performance bonus are two different things. If you are performance bonus then it is linked with performance or you may link with a tenure of the employee. You may also pay the performance bonus on the completion of one year with the organisation only. With this neither you require to add any separate clause nor require to recover any amount.

Dear Aniket & Manoj,
Thanks for your valuable answers.
The answer is close to retention bonus, can we pay it in beginning of the year?
Please share few more details on retention bonus.
Thanks

No Please pay after completion of the said tenure. retention bonus is no liability if employee left early. this could be very effective if you can be creative in designing the policy of retention bonus.
Dear Muniraju,
Performance and Bonus are to different things. You can not put any clause for BONUS anything beyond the norms of the bonus act. But you can mention a clause to control the performance linked monetary benefit you may think for the employee.
Regards

Performance Bonus logically shall be paid after the desired performance is achieved. Prudentially it should not not be paid in advance on mare promise of performance.
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